SOURCE: Reservoir Group

Reservoir Group

February 28, 2012 13:29 ET

Reservoir Group Bolsters Well Intervention Business With New Member

HOUSTON, TX--(Marketwire - Feb 28, 2012) - International oilfield services company Reservoir Group welcomes WellTools Ltd. as its latest member. This transaction is a further demonstration of the Group's commitment to becoming the recognized specialist in the fields of drilling, completion and production, and data management to the worldwide oil and gas industry.

WellTools Ltd. was established in 2004, and operates from its base in Inverkeithing, Scotland. The company has a solid reputation in the design and development of proprietary and specialized downhole tools for a customer base spanning the U.S., South East Asia, Middle East and Europe. A high-end engineering house, WellTools offers both design engineering solutions and manufacturing expertise.

The Fife firm will further strengthen Reservoir Group's well intervention business, composed of Aberdeen-based Well Bore Intervention (WBI) and The Tool Company, located in Assen, the Netherlands.

WellTools will continue to operate from its Fife facility where a recent expansion plan will increase current delivery capacity. In addition to this move, the company has undertaken immediate international expansion, offering its products to the global market. Former owner, Paul Hilliard, will remain in place as the general manager.

Wade McCutcheon, Reservoir Group's chief operating officer, said, "We were attracted to WellTools on the basis of its reputation for ingenuity and its ability to design and manufacture customized solutions for the industry's downhole services' challenges.

"Reserves are becoming increasingly costly to access, requiring our clients and the overall supply chain to work harder in order to remain efficient and profitable. As a result, collaboration and innovation are key to future growth within the energy sector.

"WellTools Ltd. offers solutions to both the intervention and drilling market. In welcoming the company to our club, we are adding new technologies and expertise that will ultimately enhance our ability to address the various challenges faced by the industry, while maintaining our competitive advantage."

Paul Hilliard, manager of WellTools Ltd., said, "Joining Reservoir Group offers WellTools the opportunity to expand our presence by building on the foundations that we have established over the past seven years. While we will be taking an independent route to market, the Group's excellent reputation across the worldwide oil and gas industry, coupled with the synergies existing with fellow members, made this an obvious choice. Our existing customer base will continue to benefit from the full offering and engineering skills of the company.

"Personally, the additional support offered by Reservoir will provide me with the time and capacity to shift my focus to the engineering of new customized solutions for the industry. That's where WellTools Ltd.'s true value is and we have a lot of ideas in progress that we will now be able to develop at an accelerated pace."

Notes to Editors:
Reservoir Group is an international oilfield services organization and recognized specialist in the fields of downhole drilling, completion and production and physical and digital data management. Its team of innovative thinkers challenge convention to find solutions to the increasingly complex technical demands of extracting the world's remaining hydrocarbons.

Backed by Houston-based oil and gas specialist private equity firm SCF Partners, Reservoir Group's aim is to build a global portfolio of businesses designed to deliver specialist services around hydrocarbon reservoirs.

Image of Wade McCutcheon available upon request.

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